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Uniform Investment Advisor Law Exam: Series 65 questions well answered to pass
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Uniform Investment Advisor Law Exam: Series 65 questions well answered to pass
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Uniform Investment Advisor Law Exam:Series 65
The common factor for both traditional and Roth IRAs is - correct answer ✔✔that contribution limits are
identical.
A QDRO applies only to assets in a qualified employer plan - correct answer ✔✔Qualified is in the name
of QDRO
SERP - correct answer ✔✔Supplemental Executive Retirement Plan
Difference between UTMA and UGMA is - correct answer ✔✔real estate is not transferable in UGMA
Coverdell ESA must be used by - correct answer ✔✔age 30
457 plans allow coverage to - correct answer ✔✔discriminate in favor of key employees. It also allows
for penalty-free withdrawals at any age for any reason.
The Sharpe ratio measures - correct answer ✔✔the fund's return above the risk-free rate. The higher the
Sharpe ratio, the better the risk-adjusted performance of the portfolio.
Qualifying dividends are taxed at - correct answer ✔✔a maximum rate of 15%
The dollar-weighted return measures the - correct answer ✔✔internal rate of return (IRR)
Mutual fund's historical returns must state the difference - correct answer ✔✔between the current yield
and total return.
, An investor purchases a 5% callable convertible subordinated debenture at par. Exactly one year later,
the bond is called at $104. The investor's total return is? - correct answer ✔✔Total return consists of
income plus gain. Buying a bond at par and having it called at $104 results in a $40 gain. With a 5%
coupon, there will be two semiannual interest payments of $25 in a one-year holding period. Adding the
$40 + $50 = $90 total return on an investment of $1,000 which = 9%.
When a bond is selling at a premium, the order, from highest to lowest yield is: - correct answer
✔✔nominal (coupon) yield, current yield, YTM, and YTC.
Holding period return (HPR) of a stock is: - correct answer ✔✔the capital appreciation plus the dividend
income received over that period.
The Dow Jones is the only index that - correct answer ✔✔is price weighted
Total return for a zero-coupon bond - correct answer ✔✔take the return and divide it by the purchase
price. Example, $950 is the purchase price, and $50 is the return = 5.26%
Stocks between $2 billion and $10 billion are - correct answer ✔✔considered mid-cap
The current yield on a mutual fund is calculated by - correct answer ✔✔dividing the annualized yield
($0.25 × 4 = $1) by the POP (Public Offering Price). In this case, $1 ÷ $30 = 0.0333 × 100 = 3.33%. In
calculating the current yield, the law prohibits the inclusion of capital gains and growth.
KapCo Balance Fund has a NAV of $9.50 and POP of $10. Over the past 12 months, it distributed
dividends totaling $.75 and capital gains totaling $1.00. What is KapCo's current yield? - correct answer
✔✔This question gives you excess information. The first point is that capital gains are not included in
calculation of a mutual fund's current yield. You must also remember that the NAV is not involved. The
calculation is:
$0.75 (annual dividend) = 7.5% / $10.00 (POP)
Time-weighted returns is a method that portfolio managers use to - correct answer ✔✔get the internal
rate of return
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